China's Zhongfu Industrial Co is considering spending about 5.5 billion yuan ($740 million) to expand and upgrade an aluminium plate and strip plant in China's central province of Henan, the company said on Friday.

The mid-sized aluminium smelter controlled by Dutch-based Vimetco, said it expected to complete the project in three years. The plant would have annual capacity of 300,000 tonnes.

An official from the company told Reuters it would replace a 170,000-tonne-per-year low-grade aluminium plate and strip plant, which had already been under construction.

The company did not explain in the filing to the Shanghai Stock Exchange how it would fund the project, and said the plan would require approval from shareholders.

China's central government has been trying to curb investment in energy and resource intensive sectors, such as aluminium or steel.

Tax and tariff changes have encouraged many companies to invest in downstream aluminium product plants. ($1=7.365 Yuan)